________ Identifies an Estimated Price Customers Are Willing to Pay

question 188

Multiple Choice

________ identifies an estimated price customers are willing to pay and then computes the cost to be achieved to earn the desired profit.

• A) Cost-plus pricing
• B) Target costing
• C) Kaizen costing
• D) Peak-load costing

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Definitions:

Purposes

The intended or desired outcomes or goals of actions, projects, or entire organizations.

Dollar Amount

Represents a numerical monetary value and is used in financial transactions to indicate the currency value.

Fiscal Year

A one-year period used by governments and businesses for accounting purposes, which may or may not align with the calendar year.

Landfill

A disposal site where waste is buried under layers of earth to prevent contamination.